Business tax: disposal of shares

lifeisstrange

Hi everyone,

Could you please help with the following exercise from the Osborne elearning website?

"Clive purchased and sold shares in Deeco Limited as follows:

10 June 2002 Purchased 7,000 shares for £21,000
12 December 2012 Sold 1,500 shares for £4,800
2 January 2013 Purchased 9,800 shares for £32,830
31 March 2013 Sold all 15,300 remaining shares for £60,000

Calculate the gain or loss on the sale of shares on 12 December 2012?
Calculate the gain or loss on the sale of shares on 31 March 2013?"

Thank you.

Nps

I get the the first disposal as a £225 loss, and the second as a £11195 gain. Do they match the answers given? If so, and you need the answers explaining, just say.

Jo Clark

I agree with NPS

lifeisstrange

Thank you Nps1976 and Jo Clark.

That's correct.
Could you please explain how you get those answers?

Nps

The first disposal is taken from the 2 Jan 13 shares as they were purchased within 30 days of the sale.

10/6/12 7000 21000

12/12/12 (1500) (5025)

2/1/13 9800 32830

31/3/13 15300 48805


The first disposal cost 5025 (32830/9800*1500) and were sold for 4800
The second disposal cost 48805 and was sold for 60000

lifeisstrange

Ok thanks again. That's very nice.